EUR/CHF Candlesticks and Ichimoku Analysis

Weekly

    •    Last Candlesticks pattern: Doji
    •    Time of formation: 20 Feb 2017
    •    Trend bias: Up

Daily

    •    Last Candlesticks pattern: Doji
    •    Time of formation: 1 Sep 2016
    •    Trend bias: Near term down

EUR/CHF – 1.0973

The single currency rallied after finding renewed buying interest at 1.0792 and broke above previous resistance at 1.0899, adding credence to our view that low has been formed at 1.0631, hence bullishness remains for the erratic rise from there to bring at least a stronger correction of early decline to 1.1001 resistance, however, break there is needed to encourage for headway to 1.1050-60, then 1.1100 but overbought condition should prevent sharp rise beyond 1.1150 and price should falter below previous chart resistance at 1.1201, risk from there has increased for a retreat to take place later.

On the downside, whilst initial pullback to 1.0930-40 is likely, reckon the Tenkan-Sen (now at 1.0886) would limit downside and bring another rise later. Below 1.0845-50 would defer and suggest top is possibly formed, bring test of the Kijun-Sen (now at 1.0818) but support at 1.0792 would hold from here, bring rebound later. A daily close below this support at 1.0792 would abort and signal top is formed, bring subsequent fall to the upper Kumo (now at 1.0726) but support at 1.0671 should remain intact, the single currency shall stage another rebound from there.

Recommendation: Buy at 1.0880 for 1.1080 with stop below 1.0780.

On the weekly chart, this week’s rally together with the breach of indicated previous resistance at 1.0899 add credence to our view that the rise from 1.0631 low is still in progress and may extend further gain to 1.1001 resistance, a sustained breach above this level would signal the fall from 1.1201 has ended, bring further gain to 1.1100 and possibly test of resistance at 1.1129 but price should falter below said recent high at 1.1201, bring retreat later. 

On the downside, expect pullback to be limited to the upper Kumo (now at 1.0912) and the lower Kumo (now at 1.0860) should attract renewed buying interest, bring another rise later.  Below the Tenkan-Sen (now at 1.0818) would defer and suggest top is possibly formed, risk test of 1.0792 support, once this level is penetrated, this would add credence to this view, bring further fall towards 1.0725-30 but support at 1.0656 should remain intact, bring another rally later this month.